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TMI Blog2011 (3) TMI 1635X X X X Extracts X X X X X X X X Extracts X X X X ..... asad Educational Society vs.CIT [ 2010 (8) TMI 757 - ITAT LUCKNOW] . In the instant case, the ld. CIT without bringing on record that the activities of the assessee were not genuine or were not being carried out in accordance with the objects of the assessee-society, cancelled the registration which amounts to reviewing of his earlier order when the registration was granted u/s 12A of the Act after considering and on being satisfied that the conditions specified were fulfilled by the assessee. We, therefore, considering the totality of the facts, are of the view that the action taken by the ld. CIT does not fall within the parameters of sub- Section (3) of Section 12AA of the I.T. Act. Therefore, his action in cancelling the registration by invoking the provisions of section 12AA(3) of the I.T. Act is not sustainable. In that view of the matter, we set aside the order of the ld. CIT passed u/s 12AA(3)of the I.T. Act and allow the appeal of the assessee. In the result, the appeal is allowed. X X X X Extracts X X X X X X X X Extracts X X X X ..... ns of Section 12A of the Act. He also observed that the assessee-society revised "Smriti Patra" and its objects with effect from 1.4.2004 without the permission of the department. He also pointed out that object at clause 7 of the revised Smriti Patra of the assessee-society was "For welfare and progress of persons belonging to minorities, SC/ST/OBCs etc.", therefore, the assessee-trust was created for the benefit of a particular community. On the said basis, the ld.CIT proposed to withdraw the registration granted to the assessee under Section 12A Accordingly, he issued a notice on 19.8.2010 to the assessee asking it to explain as to why the registration granted under Section 12A should not be withdrawn. In response to the said notice, the assessee vide written reply dated 6.10.2010 stated as under : "In the show cause notice dated 19.08.2010, two objections have been raised, first, it has been mentioned that it appears that no separate books of accounts have been maintained in respect of income earned from LIC commission. Income from LIC commission is a business income and not professional income as construed and is accounted for separately in the books of account maintained. R ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he registration under Section 12A with effect from 1.4.1990 vide order dated 9.2.1999. At the time of the granting the registration, the ld.CIT was satisfied with the activities of the assessee and there is no further change in the objects. It was further submitted that the objects of the assessee-society remained the same except that the earlier Memorandum was in English, but now has been translated into Hindi but the objects remained charitable in nature. It was further submitted that the assessee maintained separate books with regard to income from LIC commission and those books were produced before the ld.CIT also, who has not commented on the written submissions of the assessee wherein this fact was duly mentioned. It was further submitted that the ld. CIT invoked the provisions of section 12AA(3) of the I.T.Act, which relates to the objects of the assessee and as the activities undertaken by the assessee were in accordance with the objects mentioned in the memorandum of the assessee, therefore, the ld.CIT was not justified in cancelling the registration already granted to the assessee by considering the same objects to be non-charitable in nature. It was further submitted tha ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he order dated 23.6.2010 of the I.T.A.T., Lucknow Bench 'B' in the case of M/s.R.B.N.Social & Educational Society vs. CIT, Lucknow in ITA No.169(Luc.)/2010, wherein the following observations have been given in paras 5 to 7: "5. We have carefully considered the issue in view of the material placed on record and rival submissions. In the case of Umed Charitable Trust {Umed Charitable Trust vs. Union of India and Others [2008] 307 ITR 226(Raj.)},it has been held as under: (Head note) "The line of distinction between religious purposes and charitable purposes is very thin and no watertight compartment between the two activities can be established. Unless the objective of the charitable trust in question itself is to spend its income for a particular religion and it is so found in the trust deed, the Income-tax Department cannot reject the renewal of the trust as charitable trust under section 80G of the Incometax Act, 1961, merely because one particular expenditure is for an activity which may be termed as spending for a particular religion." 6. In the case of Sri Marudhar Kesari Sthanakwasi Jain Jadgar Samiti Trust (supra) {Sri Marudhar Kesari Sthanakwasi Jain Jadgar Samiti T ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ection 12A of the I.T.Act or that the activities were not in accordance with those objects, which were already examined by the ld.CIT while granting the registration under Section 12A of the I.T.Act. In the present case, the ld.CIT invoked the provisions of section 12AA(3) of the I.T.Act, which provides that the CIT has to satisfy himself about either of the two conditions prescribed therein, namely, that the activities were not genuine or that the activities were not being carried out in accordance with the objects of the trust or the institution, as the case may be. However, in the instant case, the ld.CIT has not brought any material on record to substantiate that the activities of the assessee were not genuine or that the activities were not being carried out in accordance with the objects of the assessee. On a similar issue, this Bench of the Tribunal vide order dated 30.8.2010 in the case of Chaturvedi Har Prasad Educational Society vs.CIT (2010) 46 DTR (Lucknow)(Trib.) 121 has held as under : "From s. 12AA(3), it is clear that registration granted to any trust or society under s.12AA(1)(b) can be cancelled/withdrawn subsequently if the CIT is satisfied that the activities ..... X X X X Extracts X X X X X X X X Extracts X X X X
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